The design of new electrode materials for solid oxide electrochemical cells, which are stable against redox processes as well as exhibiting carbon/sulphur tolerance and high electronic conductivity, is a matter of considerable current interest as a means of overcoming the disadvantages of traditional Ni-containing cermets. In the present work, composite materials having the general formula (1−x)Sr2Mg0.25Ni0.75MoO6−δ + xNiO (where x = 0, 15, 30, 50, 70 and 85 mol.%) were successfully prepared to be utilised in solid oxide fuel cells. A detailed investigation of the thermal, electrical, and microstructural properties of these composites, along with their phase stability in oxidising and reducing atmospheres, was carried out. While possessing low thermal expansion coefficient (TEC) values, the composites having low Ni content (15 mol.%–70 mol.%) did not satisfy the requirement of high electronic conductivity. Conversely, the 15Sr2Mg0.25Ni0.75MoO6−δ + 85NiO samples demonstrated very high electrical conductivity (489 S sm−1 at 850 °C in wet H2) due to well-developed Ni-based networks, and no deterioration of thermal properties (TEC values of 15.4 × 10−6 K−1 in air and 14.5 × 10−6 K−1 in 50%H2/Ar; linear expansion behaviour in both atmospheres). Therefore, this material has potential for use as a component of a fuel cell electrode system.